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Government raises local wheat purchase price

Raises MSP by Rs 50 to Rs 1,400 per 100 kg

Reuters New Delhi
Last Updated : Oct 17 2013 | 1:56 PM IST

The government has raised the price the government will pay to farmers for next year's wheat to Rs 1,400 per 100 kg, up from Rs 1,350 per 100 kg a year earlier, said a government minister on Thursday.

India, the world's second-biggest rice and wheat producer, sets a price to buy the grains from local farmers to build reserves for running the its huge food welfare plan for the poor and protect growers from having to sell at a loss.

Increases in the purchase price every year has led to bumper harvests since 2007, boosting stocks at government warehouses, which are now overflowing, with extra grains stored under tarpaulin sheets.

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First Published: Oct 17 2013 | 1:28 PM IST

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